LG Display (A034220) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached KRW 6.708 trillion, up 28% QoQ and 42% YoY, driven by shipment growth across all product categories and a higher OLED revenue mix.

• Operating loss narrowed to KRW 94 billion, a significant improvement both QoQ and YoY, aided by business structure upgrades and favorable FX conditions.

• Net loss improved to KRW 471 billion, compared to KRW 761 billion in Q1 2024 and KRW 699 billion in Q2 2023.

• Business structure upgrades, cost innovation, and operational efficiency enhancements are driving improved earnings and financial stability.

Financial highlights

• Area shipments rose 23% QoQ and 37% YoY to 6.5 million square meters, in line with guidance.

• ASP per square meter was $779, nearly flat QoQ, with increased small OLED panel shipments.

• EBITDA reached KRW 1,287 billion, up from KRW 810 billion in Q1 2024 and KRW 130 billion in Q2 2023.

• Gross margin improved to 9.2% from 4.2% in Q1 2024 and -3.7% in Q2 2023.

• Cash and cash equivalents stood at KRW 2.342 trillion; inventory at KRW 3.082 trillion, down QoQ.

Outlook and guidance

• Q3 area shipments expected to grow by mid-single digit percent QoQ, driven by increased panel purchases and seasonal demand.

• ASP per square meter projected to remain flat; OLED panel shipments, including mobile, expected to expand.

• Continued focus on business structure upgrade, cost innovation, and operational efficiency to manage market volatility.

• Management expects future results to vary based on market conditions and strategic direction.